CREDAI report projects real estate contribution to GDP to be $5.17 trillion by 2047
The Confederation of Real Estate Developers’ Association of India (CREDAI) released a report on Indian Real Estate’s contribution towards Viksit Bharat at its annual conference YouthCon organised by CREDAI’s Youth Wing - a leading industry platform designed to bring together the next generation of real estate developers with the aim of cultivating and mentoring them, fostering growth into proficient professionals, principled entrepreneurs, and authentic leaders within the real estate sector.
Hardeep Singh Puri, Minister for Housing and Urban Affairs & Petroleum and Natural Gas, Government of India, inaugurated the two-day conference alongside the CREDAI leadership team. The two-day conference featured various sessions aimed at helping delegates prepare for the future of real estate.
During the event, CREDAI released a report “Building Viksit Bharat”-Transformative role of the real estate sector in India. According to CREDAI, Indian Real Estate is bound to have a significant impact on the Indian economy - with the sector projected to reach $1.3 trillion (13.8% of projected GDP) by FY 2034 and $5.17 trillion (17.5% of projected GDP) by 2047.
CREDAI, in its report, also outlined pertinent industry trends and insights which are bound to provide a holistic view of the sector’s growth, while also giving direction to the industry as a whole. According to the report, the current market size of Indian real estate stands at 24 lakh crores, split between residential and commercial in the ratio of 80% and 20%, respectively. Among the residential segment, 61% of current supply is above the cost of Rs 45 lakhs. The average home area is also increasing at 11% on an annual basis. Over 28 crore Indian citizens want to buy a house, among the 40-crore population that is yet to own a house in the country. CREDAI also projects that there will be a 7-crore additional housing demand by 2030.
Reflecting the aspirational growth of Indian homebuyers, over 87.4% of housing demand by 2030 is expected to be of houses costing more than Rs 45 lakhs.
